Q. About Raising Util one Month & Paying off Next Month

[jbh]

Hey,

My friend had an interesting question. What happens to a fico score if
for one month balances are high ( he's in the mid 700's or so with no baddies)
and then the next month it's 10%.

Should he expect a temporary 30+ point drop and, if so, would it come back once it's paid back?

Thanks

[haulingthescoreup]

When it comes to util, FICO has no memory. Whatever is on your reports at the moment you hit "submit" will generate the score.

So yes, if the util is up, the score from that report will be down. As soon as the balances are paid down/off, AND the balances are updated, the score will reflect that as well.

[jbh]

I figured. His concern is whether the 2 months from now score (when util is low as it is) would be almost = to this or if he'd have to climb. If it's truly based on ratio and is a dynamic calculation, he SHOULD be ok in 2 months, right?

Thanks for your time.

[Anonymous]

Yes, utilization has no memory.

[MattH]

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@haulingthescoreup wrote:
When it comes to util, FICO has no memory. Whatever is on your reports at the moment you hit "submit" will generate the score.

So yes, if the util is up, the score from that report will be down. As soon as the balances are paid down/off, AND the balances are updated, the score will reflect that as well.

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Do remember some credit card companies report the PREVIOUS month's balances so it can take over two months for paying off the balance to appear in the reports.

[haulingthescoreup]

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@MattH wrote:

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@haulingthescoreup wrote:

When it comes to util, FICO has no memory. Whatever is on your reports at the moment you hit "submit" will generate the score.

So yes, if the util is up, the score from that report will be down. As soon as the balances are paid down/off, AND the balances are updated, the score will reflect that as well.

---

Do remember some credit card companies report the PREVIOUS month's balances so it can take over two months for paying off the balance to appear in the reports.

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Yes, very true! American Express in particular is the anchor dragging behind the quick util turnaround boat.